Post Utme Futa 2021 Accounting Question 14

Practice objective / multiple choice question 14 from the 2021 Post Utme Futa Accounting examination.

Post Utme Futa 2021 Accounting Objective / Multiple Choice
Question 14 POST_UTME_FUTA • 2021 • ACCOUNTING • objective

A government agency prepares its financial statements in accordance with the Public Sector Accounting Standards (PSAS). The agency's financial statements show a net loss of ₦500,000. What is the correct treatment of this loss?

Answer Options

Correct Answer A. The loss is transferred to the retained earnings account.
B. The loss is transferred to the general reserve account.
C. The loss is transferred to the capital reserve account.
D. The loss is transferred to the appropriations account.
Correct Answer
A
Correct Option:
The loss is transferred to the retained earnings account.

About This Question

This is Post Utme Futa 2021 Accounting Question 14. It is one of the objective questions from the 2021 Post Utme Futa Accounting examination.

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